ACA Preparation Guide

Transcription

1 ACA Preparation Guide

2 2018 ACA Is Upon Us! ACA for 2015, 2016, and 2017 is behind us, all forms were submitted timely to the IRS and all forms were accepted by the IRS. Hopefully you find that the review and approval process gets easier with each passing year. On that note, we re already looking forward to 2018 ACA reporting. We want to be sure that you re prepared for this well in advance of year end. The key to ACA success? Simply maintaining accurate and up-to-date records in isolved. In order to assist you with this, we've developed a guide to walk you through the fields in isolved that need to be maintained throughout the year to produce accurate 1094-C and 1095-C forms come year end. Should you follow this guide, your forms come year end should only require a quick review and approval. Please feel free to contact our benefits team with any questions at benefits@dominionpayroll.com Thank you, Your Dominion Payroll - Benefits Team

3 ACA Success = Maintaining Accurate Employee Records in isolved The 3 Major Driving Forces: It is imperative that these fields are maintained accurately throughout the year. These fields will drive the codes that are produced on the 1095C forms for ACA reporting. If they are not maintained correctly your 1095C forms will not populate correctly. 1. Employment Status History Each employee must have an accurate history of employment status with accurate effective dates in isolved. This should include accurate hire date, and if applicable termination date, rehire date, etc. isolved will use this data to determine the correct code to populate on Line 14 (Offer of Coverage) of the 1095C-Form for each month of the calendar year. 2. Employment Category History Each employee must have an accurate employment category history with correct effective dates in isolved. isolved will use this data to determine the correct code to populate on Line 14 (Offer of Coverage) of the 1095C-Form for each month of the calendar year. 3. Medical Plan History Each employee that is enrolled in a medical plan must have a medical plan assigned to their employee record in isolved with correct effective dates. isolved will not recognize the medical deduction, it is programed to recognize the assignment of the medical plan to the employee. If the plan is not assigned to the employee, the 1095C form will not reflect their enrollment.

4 1a. Managing Employment Status in isolved The status history for each employee can be verified and edited on the Employment Status History screen: Employee Management > Employee Maintenance > Employment Status History. Employers Should: ü Ensure employees have accurate Hire Dates ü Ensure employees have accurate Termination Dates (if applicable) Note + Path: o Terminate employees using the Terminate button on the General Screen o Terminated employees should NOT have a status of Inactive o Employee Management > Employee Maintenance > General > Terminate ü Ensure employees have accurate Rehire Dates (if applicable) Note + Path: o If someone was previously employed with the company they should be Rehired and not treated as a new hire. You can locate previous employees by changing the employment status view to Terminated and clicking Apply o Employee Management > Employee Maintenance > General > Rehire ü Ensure employees have accurate Leave of Absence (LOA) Dates (if applicable) Path: o Employee Management > Employee Maintenance > Employment Status History

5 2a. Managing Employment Category in isolved The category history for each employee can be verified and edited on the Employment screen: Employee Management > Employee Maintenance > Employment. ACA Look-Back Change in Status Report This report should be run with every payroll. It will identify employees who have completed their Initial Measurement period for ACA reporting/tracking employee hours. It will only populate with data if someone has reached the end of their measurement period during that pay period. If a part-time employee has averaged over 30 hours a week during this time then the system will automatically create a new employment category + effective date and mark them as Hours met for ACA Full-time Status. As such, their 1095C form will reflect that an offer of benefit coverage was made. An employer should extend an offer of coverage. The ACA Look-Back Change in Status Report can be generated within Client Reports: Reporting > Client Reports > ACA Look-Back Change in Status Report Employers Should: ü Ensure employees have an employment category with an accurate effective date and, if applicable, a history of category changes with accurate effective dates. ü Run the ACA Look-Back Change in Status Report each payroll & offer medical benefits if necessary

6 3a. Managing Medical Plans in isolved The benefit plan history for each employee can be verified and edited on the Employee screen: Employee Management > Employee Benefits > Benefit Plans. Adding the Benefit Plan +Add New > Select Medical from the Benefit Type > Select the Plan > Select the Coverage Level > Adjust the Start Date if Necessary > Save Stopping the Benefit Plan Employee Management > Employee Benefits > Benefit Plans > Edit > Add the Stop Date* > Save *Note: This will only need to be done for Active employees who are ending their coverage. The stop date will automatically populate as the last day of the month for employees that are terminated. No additional action (beyond terminating) is required. Employers Should: ü Ensure any employees enrolled in a medical plan have a plan assigned in isolved with accurate start, and if applicable, stop dates.

7 It s That Easy! If all these fields are maintained throughout the year, then you should be ready for ACA reporting come year end! You will need to provide us with the new medical rates at your renewal, and reassign benefit plans to employees as necessary annually.

8 2018 ACA Preparation Checklist Ensure employees have an accurate historical record of employment status. Verify hire dates, rehire dates, termination dates, etc. Ensure employees have an accurate historical record of employment categories with accurate effective dates Ensure that employees enrolled in medical coverage have benefit a medical plan assigned in isolved with accurate start and stop dates if applicable Provide the Benefits Team at Dominion Payroll with updated medical plan details and renewal rates prior to expiration each plan renewal If self-insured or partially self-insured, verify that all dependent enrollment information update and attached to the enrollment (including social security numbers) Preview your ACA Forms in isolved under ACA Forms Approval and then click Preview Report or Preview Forms Approve your ACA Forms by clicking Approve in isolved under ACA Forms Approval by February 2 nd, 2019